Is there a carryover in cost-of-living for years that exceed 2%?
A. Yes. However, pursuant to Government Code section 31870, the cost-of-living increase or decrease in any year which is not met by the maximum annual change of 2% in allowances shall be accumulated or “banked” to be met by the increases or decreases in allowance in future years; except that no CPI decrease shall reduce the allowance below the amount being received by the member or beneficiary on the effective date of the allowance.
